Methodology of Economic Crimes
Whereas certain types of economic crime are particular to certain areas, other types, like false statements and identity theft, cut across all businesses. Check processing follows particular steps. One writes a check to be drawn on his or her bank to pay a bill. When the payee receives check, he or she deposits it into his/her account requesting payment. The process of clearing checks then entails moving money from the check writer’s account to one’s account.
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In 2000, the American Bankers Association stated that banks lost nearly $512 million to check fraud. However, Paper checks have virtually vanished from the clearing process in recent times. In 2012, almost all checks processed by the Fed were transformed to electronic images for payment, and record keeping. Though utilization of checks by organizations has narrowed, they remain to be the main target for those executing payments fraud. Eighty-two percent of corporations that underwent actual or attempted fraud in 2013 were targets of check fraud.
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